NASDAQ futures are coming into Tuesday gap down after an overnight session featuring normal range and volume. Price worked lower and took back most of Monday’s gains before settling into two-way trade. At 8:30am the Consumer Price Index came in lower than expected and Housing Starts were above expectations.
Also on the economic docket today we have Industrial/Manufacturing Production at 9:15am, a 52-week and 4-week T-bill auction at 11:30am.
Yesterday we printed a normal variation up. The week began with a gap up and buyers drove prices higher off the open. Buyers attempted to continue exploring higher prices after lunch but stalled out after making a new high. This introduced some responsive selling back down to the midpoint as the day ended.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 4822.75. From here buyers continue higher, up through overnight high 4825.50. Look for responsive sellers around 4829.50 and two-way trade to ensue.
Hypo 2 sellers push down through overnight low 4811.50 and close the weekly gap down to 4804.25. Buyers show up here and two-way trade ensues.
Hypo 3 strong sellers take out overnight low 4811.50, close gap down to 4804.25 then sustain trade below it setting up a move to target 4794.25 before two way trade ensues.
Hypo 4 strong buyers push up through overnight high 4825.50 then probe Monday’s high 4835.25. Look for sellers up around 4841.25 and two-way trade to ensue.
Levels:
Volume profiles, gaps, and measured moves:
